How Trump May Try to do QE Without The Fed

Release the hounds!!!

12-4-2024
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1913 America died

Sadly, the reason not just banks; but the entire Western financial sector is so over-regulated is because these more ons have abused the previous lack of Regulation, destroying countless people's lives!
Alas, the ones above them always get away scott free! These scapegoats are just the ones who can be taken down. Look at how every failed bank gets incorporated into the largest banking entities!

The assets increase will drive housing costs even higher its good for those that own the assets, but I don’t see how this is going to help the actual economy inflation how are people going to close the gap that exists now higher wages and higher assets cost that delta doesn’t close

Excellent video

I thought M2 increase is not QE by definition. No?

If Powell refuses to do QE, Trump's people will probably do "backdoor" QE through the banks.

Debt monetization/QE only creates base money though, bank reserves in particular that don't enter the economy, so in essence it's just an asset swap. Now if that money somehow finds its way to non-bank entities, that's another question.

With deregulation maybe the gov could subsidize capital investment and attempt to secure growth for the next generation.

Or at least continue to subsidize meat production.

QE- short for money laundering.

“Fractional Reserve Banking”

i dunno if u said it, but one important note is that treasury bills and bonds r auctioned, if ur new to macro thats actually an important part of the bond market that can take forever to learn cuz no one ever says it lol

The whole industry seems needlessly complex when it just boils down to risk+/reward+

In your portfolio, you need both litecoin and bitcoin as money and investment. You can't print litecoin. Litecoin (LTC) is not a security, it is a digital precious metal with Proof of Work (PoW) consensus mechanism, a digital commodity with a fixed supply of 84 million coins that cannot be debased, censured, seized, frozen, or confiscated. LTC is a permissionless, decentralized digital payment medium and a store of value without intermediaries such as banks. Even though litecoin is not a fork of bitcoin, it complements bitcoin, like silver complemented gold under a bimetallic monetary system, but litecoin has its advantages that bitcoin doesn't possess. The rarity of litecoin means that only 84 million litecoins will exist. As the second oldest coin on the market, litecoin from its inception in 2011 was designed to be the "digital silver money" to bitcoin the "digital gold investment".

In my opinion<, according to what I heard in my college macroeconomics class, the reason why lower inflation would hurt the middle class is because, in order for the FED to lower inflation, they have to raise rates, lowering debt, which lowers demand. Any lower prices would be from a decline in demand. If they just get rid of all the money that they printed, reversing our inflation and bringing prices to how they were, our economy would likely collapse overnight. That's why historically, the FED dropping inflation by a percent has had a 2-3 percent decrease in GDP. But the recent surge in demand from inflation is only temporary, as people will eventually adjust and cut back on spending, which we are starting to see. The FED has backed itself into a corner.

Why would any of that be a good thing?

The federal government can also do two additional novel things to increase liquidity:

1. Pass a stable coin act to encourage financial institutions to purchase Treasuries which can be used to back private USD stable coins.

2. Allow banks to take Bitcoin on deposit and use it as collateral for mortgages, loans, and fiat lines of credit.

do away with regulations & bring back free markets... isn't fraud a regulation turned law🤔 What would happen to current bank balances if the free market was reinstated & sound money reignited?

While being technically correct as explained, I disagree with the characterization as "printing money" or "creating money out of thin air. When you deposit that dollar at the bank, that dollar is now possessed by the bank and you now have a ledger entry at the bank stating you have handed them a dollar. When the bank lends that dollar and it gets deposited at a different bank, there is still only the one dollar in existence. No new dollar got created to lend. What got created was a ledger entry, not a new dollar.
Yes, that LOOKS like an increase in the money supply (because a dollar gets counted multiple times in ledger entries). But to characterize it as "money printing" or "creating money out of thin air" IMPLIES mechanisms that are not actually occurring. Ledger entries are not money. Ledge entries count the exchange or transfer of money.
I would also not characterize its as fraid. They aren't claiming they keep YOUR dollar in a vault. It IS a contract to return a dollar to you (could be a different dollar, because fungible) on request. Now if they fail to make good on that contract, that's breach of contract, not fraud.
And where the problem comes in is where you have multiple ledger entries counting that same dollar and those people want to call their claim on that dollar at the same time as there is only that one dollar. If money was "created out of thin air" then that conflict would not exist as the "money created out of thin air" would then service all claims. But it is exactly because money was NOT created out of thin air that the unserviceable conflict can arise.
Now if you wanted the bank to hold YOUR dollar, well, they provide safe deposit boxes that could be used for the that.
Imagine I have a tool. I lend the tool to you for you to do some job. But then you in turn lend it to someone else. Did that create new tools out of thin air or was it the same single tool being used in multiple uses? Now, if I come to you and want it back, you're going to have to get it back from who you lent its to or we're going to have an issue.

Love this . Only person who is actually informed. Not that I'm that smart but he is spot on

Great as usual, thanks. It seems inflationary but will likely push precious metals higher, I can live with that. I’m hoping for a surge so I can start getting out. I just hope there’s a drop in something else so I have a place to put profits.

Parity is coming 1 sat = 1Dollar. All will kneel. GL.

Is there an indicator that we can check if that happens? Because if that’s the case, rate hikes will no longer mean less liquidity necessarily… USA m2, maybe?

I Adore your proficiency🤙👏

it would be great if all the money got put onto a triple ledger block chain so everyone could see all the transactions via public anonymous keys. congress was hijacked by funny money european banksters when they are supposed to be regulating the money supply. they can do that now with crypto.

If 2008 taught us anything, do NOT de-regulate the banks! 😳

Reagan deregulated banking and it unleashed preditory lending practices on Americans.

Blimey if I just hope Trumps got some people behind him with some brains in their heads, otherwise it ain't going to go well!

joe roe rogan with financial literacy, without trt

Whoa, this is big, and kinda scary.

Deregulation needed in the insurance industry

As if the fed wont do QE themselves…

It is about to accellerate anyway. Reverse repo is dry and they need someone to buy debt at lower and lower rates.

Here the ISDA letter comes in.

Trump need to back the dollar with silver lot of silver in west in the mnts then revalue it to 1000 per oz

So he DOESN'T think the government's, unnecessary and unprecedentedcriminal fiscalabuse,.. adding $8 trillion +/-,.. over 30% to the debt in just under 4 years,..... is the problem,.... but the fractional reserve banking system and QE are??????

Do we have this about right????

He talks about all of these projected conspiracies on how the Fed and the banks and even worse orange man could do stealth QE,... "monetizing the deficits/debt"

but misses,.. doesn't even mention,... all of the 800 lb gorillas and their pet pink elephants in the economic room,.. the unnecessary and unprecedentedcriminal fiscalabuse,,.. the actual deficits which are the root of the problem,..

Where to start?

1. The fractional reserve banking system has existed throughout the world for 100's of years.

There wouldn't be the economic growth we've had without it, If everyone had to wait and save up the cash before they could buy things,... like homes. durable goods,... the economy would be a fraction of what it is and innovation would be almost nonexistent.

2. The Fed doesn't "print dollars" when it does QE. The Fed doing QE is not "monetization of debt".

First, the Fed has been doing QT for the last couple of years,.. not QE,.. but

when the Fed does do QE, what it does is create Fed reserves that it exchanges with primary dealers for MBS'es, Treasuries,... and in some extreme times and countries even equities.

This frees up capital in the banks to make loans.

Fed reserves can only be used by banks to make loans in the fractional reserve system.

Businesses, consumers,.. et al have no access to Fed reserves except via loans banks can make with the increased balance sheet capacity.

But then. just because banks have additional reserves to make loans,.. doesn't mean they will make loans or borrowers will borrow.

3. QE is not necessarily inflationary. In fact it can be deflationary.

If the Fed didn't perform QE (effectively reducing the number of buyers),.. as the government kept issuing debt,.. the supply would surpass demand and remaining treasury buyers would demand higher yields,.. causing inflation.

The Fed holding treasuries takes them out of the market,.. reducing supply and therefore yields and therefore inflation.

Just look at Japan,.. where the BOJ buys most of Japan's debt.

The internal inflation rate is low,.. although externally it is destroying the buying power of the Yen,.. not only relative commodities but even to other currencies.

But Japan generally has a trade surplus,.. which means it takes in reserves from the eurodollar market,. and counteracts some of its debt.

The US on the other hand, has a trade deficit,...

In the US, the dollar is the world reserve currency and the global GDP needs a growing money supply to support economic growth.

The US's trade deficit feeds eurodollars into the eurodollar economy.

And when foreign countries have excess eurodollar reserves,.. they usually invest them back into the US in equities, other hard assets and the safety of US treasuries.


4. Government deficit spending IS printing money,..and very inflationary.

Government deficit spending is an antecedent to the money landing in bank accounts upon which the

a. M2 money supply is counted (M2 incudes currency in circulation, deposit liabilities, savings,... but NOT Fed reserves)

and

b. banks can use the additional actual non bank cash reserves (as opposed to Fed reserves) to make loans.


5. So most importantly,... what wasn't even touched on in this video,....

if it weren't for the unnecessary and unprecedentedcriminal fiscalabuse there'd be no need for QE.

Or the hand wringing over QE conspiracies under Trump.

And that's what Trump. Musk Vivek, et al and DOGE are going to attempt to do,.. reduce the deficit spending,.. increase private market economic growth (as opposed to the unsustainable government debt fueled antigrowth**) and in the end bring us back from the Debt to GDP cliff edge, the Bribemadmin has put us on.

** the current admin has been been deficit spending 6 to 10% of GDP for the last 4 years
generating a paltry 1 to 3% real GDP growth,
giving us an entrenched steady state structural (dollar buying power destroying) inflation rate of 4 to 5%.

How's that $trillions wasted on "climatchangealarmism, enriching the rich & illegalalienswhile impoverishing the US citizen middle class, and demvote buying working out for ya?

It's not Trump and QE we need to worry about as this video suggests.

Best tip you can hand over to an all knowing president 😅

How is that supposed to fix inflation.

You lost me as a viewer when you insisted banks are commiting fraud. Banks have operated this way for hundreds of years and if properly managed the system works perfectly fine. Telling your viewers that banks are fraudsters is a disservice.

You should apply to doge
All hands on Deck

Your concept of deregulation is wrong. If one bank collapses due to deregulation it won’t make more banks regulate themselves more by taking on less risk. Banks and other business are greedy by nature and naturally they are going to want to cut corners even in it means long term consequences.
During an initial bank run that would cause the public to loose confidence in all other banks and cause massive bank runs everywhere leading to other collapses . look up the history of the federal reserve and why it was created in the first place.

Think about it, if Chase bank or Wells Fargo were to collapse tomorrow and there was no regulation in place to protect the consumer, would you actually feel safe putting your money in other banks after that or would you be running for the hills with your money??

Okay... If I got this right the people who are debt free and save have their wealth stolen so the federal government and debtors can save money on interest?

And why would he want to do QE?

Same reason JFK died. I’m not happy about it but RIP Trump. One of the greatest things that could ever happen to us Americans is to lose the Fed, but the globalists will never allow that dramatic loss of power to occur

the fed (more precisely Powell) is the reason trump got elected...

He will not take any action that is not in the best interest of wall street...

Shut down the IRS

I like that Trump is shamelessly everything bad that we ever learned not to be.. He's sort of every C student's revolt against school and knowledge.
The imlposion of morality, democracy, and the economy should be interesting and well-deserved for America.

This is nothing more than fact and people should know...I've lost well over six figures listening to your stock advice. Never again.

The only people that want to deregulate the banks are the ones that don't have no money in the bank, they only borrow money from the bank and they want it easier to get even more

banks create and buy qe-when return iou to fed and get their 'created b'sheet evaporate as zero'